Devices such as credit cards, debit cards, prepaid cards, and stored value devices are typically used to pay for goods and services. Many of these devices provide access to rewards programs or other benefits to incentivize spending. For example, a particular credit card may be tied to a rewards program that provides airlines miles based on user expenditures, such that a user may earn a mile for each dollar spent. The user can then redeem accumulated miles to purchase a flight or hotel. Another credit card may provide a certain percentage of expenditures as a cash-back reward. For example, a user may receive five percent of total expenditures on a credit card as a cash-back reward at the end of the year. Other credit cards may provide specific benefits, such as price protection for purchases or travel insurance, or low interest rates and fees. Each of these reward programs and incentives is typically tied to a single and separate financial account.
Many users apply for and use multiple credit cards to take advantage of these specific reward programs and incentives in an effort to maximize their rewards based on the type of transaction or activity they conduct. For example, a user may have a first credit card that provides the best rewards when travelling, a second credit card that provides the best rewards when dining, a third credit card that provides travel insurance, and a fourth credit card that provides a low annual percentage rate. The user must physically carry all these cards and decide which to use depending on the particular transaction or activity, and manually keep track of expenditures and rewards for each separate account. Moreover, if making transactions online, the user must remember and provide the account information for multiple different accounts, creating a security risk with respect to sensitive account information.
Also, the user must apply for a new credit card each time a better reward is available. A need therefore exists for systems and methods of providing improved multi-use account systems for optimizing financial transactions.
The disclosed system and methods for optimizing financial transactions using a multi-use account system address the existing problems set forth above, as well as other deficiencies in the prior art.